Whoa, wtf? A non-crypto post from GMGH?

Ahaha, yes. Hyflux and their perpetual bonds and preference shares have always piqued my interest. It just so happened that I came across this ST article on the Hyflux preference shares which I remember talking about in 2016 a while after they issued their perpetual bonds.

Back in Oct 2016, I talked about Hyflux and their recently launched 6% perpetual bonds. Brief summary: Hyflux perp bonds tanked from 100 par to 96 pretty much immediately. The better buy would be to get their preference shares which were trading at 94.6.

Fast forward to today, the perp bonds are sitting at 75. A fantastic 25% over less than 2 years. Congratulations Hyflux perp bond holders! Oh wait, it’s a 25% loss. Oops. To be fair, they did get 3 payouts already, so the loss is less. Maybe 16% net loss only? Yes, “only”…